Posted by
I believe on Tuesday, August 21, 2007 1:32:15 PM
Traditionally, French wine is a drink marking sophistication and class. French wine makers? Not so much.
The Grapes of Wrath is beginning to take new meaning as French wine makers revolted against cheaper imports from Australia, Chile, and South Africa by sabotaging wine trucks, supermarkets and government offices. Wine makers made further threats of violence to French President Nicolas Sarkozy if France’s wine is not properly protected.
While this isn’t the first time French wine makers rioted over increased competition, there is a stirring debate on which is worse: the continual drive for protectionist policies or all the quality wine destroyed by the rioters.
Here’s Don Bordeaux’s take on protectionism:
"Protectionism" ultimately rests upon the threat to use violence against innocent persons engaged in peaceful commerce. Most of the time the coercive nature of protectionism is concealed -- out of view -- because consumers and producers harmed by it are deterred by the threat of violence from freely trading: the coercive nature of protectionism remains largely hidden. The thieves persuade the state to perform the threats; it all looks so clean and antiseptic and 'policy-ish.' Sometimes, though, protectionism reveals its disfigured, snarling face and its nasty, swinging fists.
Already a beneficiary of government subsidies, the wine industry constantly requests more at the threat of further protests. Imagine if other produces revolted by throwing a economically damaging temper tantrum to receive the protection they request. Although highly unlikely, if farmers in the United States pushed for more subsidies by destroying fruit and vegetable trucks, the consequent cafeteria-style food fight would cause unrealized profits or, even worse, higher government subsidies.
Needless to say, protectionism obstructs competition and protected industries create artificially high prices for consumers resulting in bad economic policy and wasteful government spending.
Cross posted on www.regwatch.org